Determine your home equity and see how much you might be able to borrow in South Africa.
Your Home Equity Results
Loan Progress
Understanding Home Equity in South Africa
Home equity is the portion of your property that you truly own. It’s calculated by subtracting your outstanding bond balance from your home’s current market value. As you pay down your bond and as property values increase, your equity grows.
How to Use This Calculator
This calculator provides an estimate of your current home equity and potential borrowing power based on South African banking practices. Enter your home’s current market value, remaining bond balance, and any other loans secured against your property to see your results.
Why Home Equity Matters in South Africa
Home equity is a valuable financial resource that can be accessed through:
- Further Advances: Many South African banks offer further advances on existing bonds when you’ve built up sufficient equity.
- Bond Refinancing: Refinancing your bond may allow you to access equity while potentially securing better interest rates.
- Property Sale: When selling your home, your equity represents the potential profit after settling your bond.
Important Considerations
- Property Valuations: Market values can fluctuate. For accuracy, consider getting a professional valuation from a certified South African property valuer.
- Bank Policies: Each South African bank has different lending criteria for equity releases, typically ranging from 70-80% LTV (Loan-to-Value) ratios.
- Interest Rates: The South African Reserve Bank’s prime rate influences home loan costs. Higher interest rates increase the cost of accessing equity.
- Credit Score: South African credit bureaus like TransUnion and Experian evaluate your creditworthiness, affecting your ability to access equity.
Making Smart Financial Decisions
Before accessing your home equity:
- Consult with a registered South African financial advisor
- Consider the purpose of the equity withdrawal and potential returns
- Evaluate your ability to manage potentially higher monthly repayments
- Compare offers from multiple South African lenders
This calculator provides estimates only and does not constitute financial advice. Property values, lending criteria, and interest rates in South Africa are subject to change.
